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Indian equity benchmarks extended gains to the third straight session on Wednesday led by gains in financial, banking and healthcare stocks and positive sentiments from global markets. Markets made gap-up opening and stayed in green for whole day, as traders took encouragement as Chief Economic Adviser V Anantha Nageswaran expressed hope that India would become a $5 trillion economy by FY26 or the next year on the back of 8-9 per cent sustained growth. He added gross domestic product (GDP) in dollar terms has already crossed $3 trillion. Some support also came in as provisional data of the commerce ministry showed that the country's exports rose by 23.69 per cent to $34.06 billion in January on healthy performance by engineering, petroleum and gems and jewellery segments even as trade deficit widened to $17.94 billion during the month. Traders took note of report that Commerce and industry minister Piyush Goyal said his ministry is in talks with the finance ministry to allow firms in the special economic zones (SEZs) to sell goods in the domestic market by paying just an equalisation levy. 

The key indices were seen extending gains in noon trade as continued buying across all sectors. Sentiments remained up-beat with IT industry body Nasscom stating that the Union Budget 2022 sets the tone for India's 'techade' and establishing the country as a global hub in terms of technology innovation. Traders remained positive, as the USA India Chamber of Commerce has said that in the midst of third wave of COVID-19, Finance Minister Nirmala Sitharaman has come up with an impactful budget which is balanced, fiscally prudent and growth-oriented. Further, support also came in as Union Agriculture and Farmers Welfare Minister Narendra Singh Tomar, welcoming the Budget's focus on the agriculture sector, has said that it is the budget for the villages, poor people, farmers, women and youth. The minister said the budget of the Ministry of Agriculture and Farmers Welfare has been increased continuously in both the tenures of the Government, this time also it has been increased to Rs.1.32 lakh crore from Rs.1.23 lakh crore last year.

On the global front, European markets were trading higher ahead of key central bank decisions due on Thursday. The European Central Bank is unlikely to announce policy tightening anytime soon while investors await a second consecutive rate hike from the Bank of England. Asian stocks advanced in thin trade on Wednesday as investors continue to pick up beaten-down shares following a disappointing January. Markets in China, Hong Kong and South Korea were closed for the Lunar New year holidays. Back home, on the sectoral front, aviation industry stocks were in focus as Jet fuel price rose to record levels across the country following a steep 8.5 per cent hike necessitated due to a spike in international oil prices. There was some reaction in power stocks as the power ministry data showed that India’s power consumption grew marginally at 2.6 per cent year-on-year in January to 112.67 billion units (BU), showing the impact of local restrictions imposed by states amid the third wave of COVID-19. Power consumption in the entire January last year was 109.76 BU, which was 4.4 per cent higher than 105.15 BU in January 2020.

Finally, the BSE Sensex rose 695.76 points or 1.18% to 59,558.33 and the CNX Nifty was up by 203.15 points or 1.16% to 17,780.00. 

The BSE Sensex touched high and low of 59,618.51 and 59,193.05, respectively. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 1.08%, while Small cap index was up by 1.54%.

The top gaining sectoral indices on the BSE were Bankex up by 2.08%, Finance up by 2%, Consumer Durables up by 1.50%, Healthcare up by 1.44% and Realty up by 1.38%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Indusind Bank up by 5.57%, Bajaj Finserv up by 5.13%, HCL Technologies up by 3.40%, Bajaj Finance up by 3.17% and Kotak Mahindra Bank up by 3.01%. On the flip side, Tech Mahindra down by 1.61%, Nestle down by 1.03%, Ultratech Cement down by 0.97%, Maruti Suzuki down by 0.48% and Larsen & Toubro down by 0.47% were the top losers.

Meanwhile, with sustained growth of 8-9 per cent, Chief Economic Adviser V Anantha Nageswaran has expressed hope that India would become a $5 trillion economy by FY26 or the next year. He added that gross domestic product (GDP) in dollar terms has already crossed $3 trillion.

He noted that ‘Depending on how exchange rate move...Indian Rupee would remain stable to strong given what is going on the developed world. If we continue to retain the path of 8-9 per cent real GDP, it would translate into 8 per cent dollar GDP growth. If we extrapolate that we should be at the $5 trillion by 2025-26 or 2026-27’.

Meanwhile, Indian economy is estimated to grow at 9.2 per cent during the current fiscal while 8-8.5 per cent for the next financial year. Prime Minister Narendra Modi in 2019 envisioned making India a $5 trillion economy and a global economic powerhouse by 2024-25. With this, India would become the third largest economy in the world.

The CNX Nifty traded in a range of 17,794.60 and 17,674.80 and there was 40 stocks advancing against 9 stocks declining, while 1 stock remain unchanged on the index. 

The top gainers on Nifty were Bajaj Finserv up by 4.98%, Indusind Bank up by 4.96%, HCL Technologies up by 3.50%, Bajaj Finance up by 3.33% and HDFC Life Insurance up by 3.22%. On the flip side, Tech Mahindra down by 1.37%, Ultratech Cement down by 1.01%, Britannia Industries down by 0.86%, Shree Cement down by 0.84% and Nestle down by 0.92% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 59.16 points or 0.79% to 7,594.94, France’s CAC increased 40.26 points or 0.57% to 7,139.75 and Germany’s DAX increased 73.07 points or 0.47% to 15,692.46.

Asian markets settled higher in thin trade on Wednesday following gains in Wall Street stocks overnight, while most of Asian markets including Hong Kong, China, Malaysia, Singapore, South Korea and Taiwan were closed for holidays. Japanese shares ended higher as investors sought to buy oversold stocks with robust earnings. Indonesian stocks were slightly higher in a thin trade after Tuesday’s holiday. Although, investors are cautiously expecting the US Fed to hike interest rates at least four times this year, starting in March.

Nikkei 225 ended up by 455.12 points or 1.68% to 27,533.60; and Jakarta Composite gained by 76.50 points or 1.15% to 6,707.65.

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